An increase in the real money supply can result from:
A) increase in the nominal money supply or an increase in the price level.
B) increase in the nominal money supply or a decrease in the price level.
C) decrease in the nominal money supply or an increase in the price level.
D) decrease in the nominal money supply or a decrease in the price level.
B
You might also like to view...
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
The economy is in its short run equilibrium at the point where the
A) price level is stable. B) SAS curve intersects the LAS curve. C) AD curve intersects the LAS curve. D) AD curve intersects the SAS curve.
If the government wants to minimize the welfare loss of a tax, it should tax goods with more inelastic demands or supplies
Indicate whether the statement is true or false
An economy is associated with every society because
a. in every society there are workers and owners of firms b. all people enjoy consuming goods c. the law of scarcity is universal d. the circular flow model applies to all societies e. economy and society are synonymous